city hall reporter. hari sreenivasan, senior correspondent for the pbs news hour. lauren sommer, science and environment reporter. and josh richman, bay area news group political reporter. josh, let's start with you. all of a sudden it seems like california, which was in the depths, is now rolling in money. and there's more taxes, we've passed proposition 30. i can't believe there's that much of a turn-around. is there? >> well, there is a turn-around. i wouldn't say we're rolling in we're looking at this $1.9 billion deficit through june 2014, and projected surpluses for some years after that. this budget is a lot smaller now. a lot smaller than it was when this crisis began several years ago. >> it's still based on a recovery. >> something of a recovery. and frankly, some of the new figures are very positive. there are new job figures out today in california that showed good job numbers for this month. money. i've never seen a state so happy to a $1.9 billion deficit over the next year and a half. that's basically where we're at. now, you have to look at that deficit, even though it's the size of wyoming's entire budget, in the context of a $42 billion deficit and $6 billion deficit, we've worn it down over time. with the passage of prop 30 last week, we have money coming in for the next several years to support education, k-12 education, college education and also to help out balancing out amended, better numbers for last month. driven by companies in the bay area. so there is some path forward it looks like at this point. >> so we're going to move to another political subject, kind of. but first, we're going to tell everybody that dan lundgren conceded defeat today, by the way, in his race with omi bareff in the sacramento area. probably the end of a career for a guy that's been in politics for a very long time.